France’s Alstom has filed a request for arbitration before the International Chamber of Commerce regarding its acquisition of Bombardier Transportation.

The French rolling stock manufacturer claimed that Bombardier Inc breached certain contractual provisions of the sale and purchase agreement dated 16 September 2020.

The company did not disclose any other details regarding the alleged breaches. It further added that it will refrain from making further comments during such legal proceeding.

Separately, Bombardier confirmed receiving the legal notice from Alstom.

In a statement, Bombardier said: “Bombardier has good grounds to defend itself against Alstom’s claim and intends to do so vigorously.

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By GlobalData

“As noted in its press release dated January 29, 2021, Bombardier also intends to challenge certain purchase price adjustments which resulted in proceeds from the Transaction being lower than initially estimated.”

It added that the arbitration proceedings may last several years.

Notably, Alstom acquired Bombardier’s rail business called Bombardier Transportation in January last year. The deal was valued at €5.5bn.

The deal made Alstom one of the largest mobility companies in the world with an expanded portfolio.

At the time of deal completion, the combined firm was said to have total pro-forma revenue of around €15.7bn with a €71.1bn order backlog.

Recently, Alstom signed a €700m framework contract to deliver 100 Flexity low-floor Next Generation Trams (NGTs) to the Department of Transport Victoria in Australia.

The contract will create 1,900 local jobs with deliveries expected to start from 2025.